Homes Using 800 kWj or Less Get Service Tax Back for 1 to 16 September Electricity Bills

Households that use 800 kWj of electricity or less in a billing cycle will get back the service tax they paid for 1 to 16 September 2026, according to a service tax policy issued by Customs on 23 October 2026.

The refund is part of a wider exemption. Under the policy, domestic users with usage of 800 kWj or less, over a billing cycle of at least 28 days, do not need to pay service tax on electricity. Electricity providers are also exempted from charging service tax to these users. The exemption runs from 1 September 2026 to 31 December 2026.

The refund does not come directly from Customs. The policy states that the electricity provider must first return the tax to customers through an adjustment on their electricity bill. Only after that can the provider show proof and claim the amount from Customs, following any procedures and conditions set by the Director General of Customs.

This means eligible households should see the refund on their electricity bill, rather than having to make a claim themselves. How the adjustment will appear on the bill depends on each provider.

The policy covers domestic users only. It does not mention any relief for shops, offices or other business premises, so business electricity bills do not fall under this exemption.

The exemption is also temporary. It ends on 31 December 2026, and the policy notes that it may be amended if there are related policy changes.

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